HDFC SIP Plans

What is the HDFC SIP Plan?

HDFC SIP (Systematic Investment Plan) is an investment option offered by HDFC Life Insurance and HDFC Mutual Fund House that allows you to invest in your market-linked fund in a disciplined manner.

In HDFC SIP Plan, you regularly invest a fixed amount of money at specified intervals (like monthly or quarterly) into Unit Linked Insurance Plan (ULIP) funds and mutual fund schemes.

This approach helps you to systematically accumulate wealth over time by averaging the cost of your investments, as they buy more units when prices are lower and fewer units when prices are higher. It is a disciplined and convenient way for you to invest in ULIP funds and mutual fund schemes without the need for a large initial investment. 

Top HDFC SIP Plans in 2024

HDFC offers a wide range of SIP plans across different categories of ULIP funds and mutual funds.

1. HDFC SIP Plans – ULIP Funds

   Some of the best SIP plans offered by ULIP-based funds are listed below:

   Fund Name	Risk Category	3-Year Returns	5-Year Returns	RSI*
   HDFC Discovery Fund	Very High	23.2%	25.8%	24.4%
   HDFC Flexi Cap Fund	Very High	N.A.	N.A.	30.7%
   HDFC Equity Advantage Fund	Very High	17.4%	19.5%	19.2%
   HDFC Opportunities Fund	Very High	18.4%	18.3%	14.1%
   HDFC Diversified Equity Fund	Very High	14.2%	16.3%	14.2%
   HDFC Equity Plus Fund	Very High	14.3%	15.4%	11.9%
   HDFC Blue Chip Fund	High	13.6%	15.2%	11.2%
   HDFC Balanced Fund	Moderate	10.2%	11.5%	9.8%
   HDFC Bond Fund	Low	4.7%	6.1%	6.9%

2. HDFC SIP Plans – Mutual Fund Schemes

   Fund Name	Risk Category	3-Year Returns	5-Year Returns	RSI*
   Equity Funds
   HDFC Infrastructure Fund	Very High	36.00%	20.80%	13.30%
   HDFC Small Cap Fund	Very High	31.40%	23.20%	20.90%
   HDFC Mid Cap Opportunities Fund	Very High	29.00%	24.80%	21.90%
   Debt Funds
   HDFC Fixed Maturity Plan 1141 Days August 2018	Moderately High	9.50%	--	8.90%
   HDFC Dynamic Debt Fund	Moderate	7.30%	7.20%	7.80%
   HDFC Credit Risk Debt Fund	Moderately High	6.90%	8.10%	8.80%
   Hybrid Funds
   HDFC Balanced Advantage Fund	Very High	23.50%	19.50%	16.40%
   HDFC Hybrid Equity Fund	Very High	15.50%	15.40%	15.60%
   HDFC Multi Asset Fund	High	15.50%	15.70%	11.90%
   Solution Oriented Funds
   HDFC Retirement Savings Fund Equity Plan	Very High	25.70%	22.70%	21.80%
   HDFC Retirement Savings Fund Hybrid Equity Plan	Very High	17.60%	17.30%	18.10%
   HDFC Retirement Savings Fund Hybrid Debt Plan	Moderately High	9.70%	9.80%	10.10%
   Other Category Funds
   HDFC Dynamic PE Ratio FoF	High	16.70%	15.40%	12.20%
   HDFC Index Fund Nifty 50 Plan	Very High	14.80%	15.80%	13.60%
   HDFC Index S&P BSE Sensex Direct Plan	Very High	13.80%	15.70%	13.70%

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Details of HDFC SIP Plans – Top 5 ULIP Funds

1. HDFC Discovery Fund

   The HDFC Discovery Fund is a Unit Linked Insurance Plan (ULIP) offered by HDFC Life Insurance Company. It is an equity-oriented fund that invests in a diversified basket of stocks across various sectors.

   Features of SIP in HDFC Discovery Fund:

   • Investment Objective: The Fund targets long-term capital growth by primarily investing in mid-cap companies. It can allocate up to 100% to mid-cap stocks as per the Nifty Midcap 100 index, with the flexibility to invest up to 25% outside this range. Additionally, it may allocate up to 10% to fixed income instruments, cash, and other liquid assets.

   • Launch Date: Sept 03, 2018

   • Asset Allocation (as of March 12 2024): Equity (91.34%) and Money Market (8.66%)

   • Benchmark Index: Nifty MidCap 100 Index 

   • Assets Under Management (AUM): ₹ 4.32 lakhs

   • Fund Managers: Mr Nishit Dholakia

   • Current NAV (as of January 31, 2024): ₹ 32.42

2. HDFC Flexi Cap Fund

   The HDFC Flexi Cap Fund is an open-ended dynamic equity mutual fund scheme offered by HDFC Mutual Fund. It invests across large-cap, mid-cap, and small-cap stocks to build a diversified portfolio.

   Features of SIP in HDFC Flexi Cap Fund:

   • Investment Objective: To achieve high long-term returns by investing in stocks across large, mid, and small-cap segments.

   • Launch Date: Oct 26, 2023

   • Asset Allocation (as of March 12 2024): Equity (91.20%) and Money Market (8.80%)

   • Benchmark Index: NSE Nifty 50 Index 

   • Assets Under Management (AUM): ₹ 44,250

   • Fund Managers: Mr Priyank Singhal

   • Current NAV (as of January 31, 2024): ₹ 12.71

3. HDFC Equity Advantage Fund

   The HDFC Equity Advantage Fund is a market-linked fund scheme offered by HDFC Life Insurance Company. This fund primarily invests in a diversified portfolio of equity and equity-related securities across various sectors and market capitalizations. 

   Features of SIP in HDFC Equity Advantage Fund:

   • Investment Objective: To achieve long-term capital growth by diversifying investments across companies of various market capitalizations. Up to 20% of the fund can be allocated to fixed income instruments, money market instruments, cash, deposits, and liquid mutual funds.

   • Launch Date: Feb 07, 2019

   • Asset Allocation (as of March 12 2024): Equity (98.43%) and Money Market (1.57%)

   • Benchmark Index: BSE-200 Index 

   • Assets Under Management (AUM): ₹ 67,753

   • Fund Managers: Mr Priyank Singhal

   • Current NAV (as of January 31, 2024): ₹ 23.81

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4. HDFC Blue Chip Fund

   HDFC Blue Chip Fund is designed to provide you with the opportunity to invest in a diversified portfolio of large-cap equities, aiming for long-term capital appreciation. The fund typically invests in well-established companies with a strong track record of performance and stability, thereby potentially reducing the risk associated with investing in equities.

   Features of SIP in HDFC Blue Chip Fund:

   • Investment Objective: The fund aims for medium to long-term capital growth by investing mostly in large-cap companies resilient across economic cycles. It'll allocate at least 80% to companies with higher market cap than the least weighted in the BSE100 index, and up to 20% to money market instruments/cash..

   • Launch Date: January 05, 2010

   • Asset Allocation (as of March 12 2024): Equity (97.53%) and Money Market (2.47%)

   • Benchmark Index: BSE-100 Index 

   • Assets Under Management (AUM): ₹ 8.64 lakhs

   • Fund Managers: Mr Nishit Dholakia

   • Current NAV (as of January 31, 2024): ₹ 43.89

5. HDFC Balanced Fund

   HDFC Life Balanced Fund is a Unit Linked Insurance Plan (ULIP) offered by HDFC Life Insurance Company. It is a balanced mutual fund that invests in a mix of equity and debt instruments. The asset allocation is typically 50-70% in equities and 30-50% in debt.

   Features of SIP in HDFC Balanced Fund:

   • Investment Objective: To merge the stability offered by debt instruments with the potential for long-term capital appreciation provided by equities through investments in both.

   • Launch Date: Sept 08, 2010

   • Asset Allocation (as of March 12 2024): Equity (61.54%), Debt (12.16%), G-Secs (25.31%), and Money Market (0.99%)

   • Benchmark Index: 60% BSE-100 40% CRISIL Composite Bond Fund Index 

   • Assets Under Management (AUM): ₹ 7.14 lakhs

   • Fund Managers: Mr Pranav Parekh & Mr Abhishek Agarwal

   • Current NAV (as of January 31, 2024): ₹ 207.48

Details of HDFC SIP Plans – Top 5 Mutual Fund Schemes

1. HDFC Infrastructure Fund

   The HDFC Infrastructure Fund is a mutual fund scheme offered by HDFC Mutual Fund. It is an equity fund that invests predominantly in companies engaged in or expected to benefit from the growth and development of infrastructure. The fund manager actively manages the portfolio, investing in companies across market capitalizations.

   Features of SIP in HDFC Infrastructure Fund:

   • Investment Objective: To mostly put money into different types of stocks and investments from companies that work on building infrastructure like roads, bridges, and utilities. It might also use some of the money, but not more than 35%, to invest in companies that aren't focused on infrastructure. The plan can invest in both big and small companies, giving it flexibility.

   • Launch Date: Dec 10, 1999

   • Asset Allocation (as of March 12 2024): Equity (86.90%) and Money Market (10.50%)

   • Benchmark Index: S&P BSE India Infrastructure Index 

   • Assets Under Management (AUM): ₹ 1,607.18 Cr.

   • Fund Managers: Mr. Srinivasan Ramamurthy & Mr. Dhruv Muchhal

   • Current NAV (as of January 31, 2024): ₹ 45.06

2. HDFC Dynamic Debt Fund

   HDFC Dynamic Debt Fund is an open-ended dynamic debt mutual fund scheme offered by HDFC Mutual Fund. It invests in a mix of debt instruments, money market instruments, and securities of Real Estate Investment Trusts (REITs).

   Features of SIP in HDFC Dynamic Debt Fund:

   • Investment Objective: To make money by investing in various debt and money market assets to generate income or increase capital value.

   • Launch Date: Dec 10, 1999

   • Asset Allocation (as of March 12 2024): Debt (94.60%) and Money Market (2.60%)

   • Benchmark Index: CRISIL Dynamic Bond B-III Index 

   • Assets Under Management (AUM): ₹ 659.40 Cr.

   • Fund Managers: Mr. Anil Bamboli & Mr. Dhruv Muchhal

   • Current NAV (as of January 31, 2024): ₹ 88.83

3. HDFC Balanced Advantage Fund

   The HDFC Balanced Advantage Fund is a Dynamic Asset Allocation mutual fund scheme offered by HDFC Mutual Fund. It invests in a mix of equity and fixed-income securities, with the proportion between the two asset classes being dynamically managed by the fund manager based on their market outlook.

   Features of SIP in HDFC Balanced Advantage Fund:

   • Investment Objective: To grow your investment over time by combining stocks and bonds to generate capital gains or regular income.

   • Launch Date: Dec 10, 1999

   • Asset Allocation (as of March 12 2024): Equity (56.80%), Debt (26.40%), and Money Market (15.10%)

   • Benchmark Index: NIFTY 50 Hybrid Composite debt 50:50 Index 

   • Assets Under Management (AUM): ₹ 78,759.07 Cr.

   • Fund Managers: Mr. Anil Bamboli, Mr.  Gopal Agrawal, Mr. Arun Agarwal, Mr. Srinivasan Ramamurthy, Mr. Nirman Morakhia, & Mr. Dhruv Muchhal

   • Current NAV (as of January 31, 2024): ₹ 487.36

4. HDFC Retirement Savings Fund Equity Plan

   The HDFC Retirement Savings Fund Equity Plan is a flexi-cap mutual fund scheme offered by HDFC Mutual Fund. It invests a minimum of 65% of its assets in equity stocks and the remaining in equity-oriented instruments. The fund aims to generate capital appreciation for investors over a long-term investment horizon.

   Features of SIP in HDFC Retirement Savings Fund Equity Fund:

   • Investment Objective: To help investors reach their retirement goals by investing in both stocks and bonds to achieve long-term growth and income.

   • Launch Date: Dec 10, 1999

   • Asset Allocation (as of March 12 2024): Equity (89.40%) and Money Market (9.60%)

   • Benchmark Index: NIFTY 500 Index 

   • Assets Under Management (AUM): ₹ 4,705.30 Cr.

   • Fund Managers: Mr. Shobhit Mehrotra, Mr. Srinivasan Ramamurthy, & Mr. Dhruv Muchhal

   • Current NAV (as of January 31, 2024): ₹ 48.81

5. HDFC Dynamic PE Ratio FoF

   The HDFC Dynamic PE Ratio FoF is a Fund of Funds (FoF) mutual fund scheme offered by HDFC Mutual Fund. It invests in a basket of other equity mutual funds that are chosen based on their dynamic PE ratio. The PE ratio, or price-to-earnings ratio, is a valuation metric that compares a company's current stock price to its earnings per share (EPS).

   Features of SIP in HDFC Dynamic PE Ratio FoF:

   • Investment Objective: To grow capital by balancing investments between HDFC Mutual Fund's chosen equity and debt schemes.

   • Launch Date: Dec 10, 1999

   • Asset Allocation (as of March 12 2024): Debt (48.00%), Equity (30.20%) and Money Market (7.30%)

   • Benchmark Index: NIFTY 50 Hybrid Composite Debt 65:35 Index 

   • Assets Under Management (AUM): ₹ 42.80 Cr.

   • Fund Managers: Mr. Anil Bamboli & Mr. Srinivasan Ramamurthy

   • Current NAV (as of January 31, 2024): ₹ 39.36

Benefits of Investing in HDFC SIP Plans

The best SIP Plans offered by HDFC investment options provide various benefits, such as follows:

• SIPs instill financial discipline by promoting regular investing.

• They help average out investment costs over time, reducing the impact of market volatility.

• SIPs offer flexibility, allowing investors to start with a low amount and adjust investments according to their financial situation.

• They harness the power of compounding for long-term wealth accumulation.

• HDFC SIP plans enable effective portfolio diversification across various asset classes and risk profiles.

• HDFC SIP Calculator provides a handy online financial tool for you to estimate potential returns and plan your investment strategies effectively.

• Experienced fund managers handle investments, potentially optimizing returns.

• SIPs offer convenience through automated investing via ECS mandates.

• Ideal for achieving long-term financial goals such as retirement planning or education funding.

• HDFC SIP plans ensure transparency by providing regular updates on fund performance.

• Depending on the investment type and duration, investors may enjoy tax benefits under applicable sections of the Income Tax Act.

Summing It Up

HDFC SIP plans offer a convenient and disciplined approach to investing in market-linked funds, allowing you to achieve your financial goals through regular and systematic contributions. With a diverse range of investment options and the flexibility to start with minimal amounts, HDFC SIP plans empower you to build wealth over time while mitigating market volatility.